February 18, 2009

Converge experienced a significant increase in both IDE and SATA demand from the second half of January through the first half of February. This is true in the 80 GB through 500 GB capacities for refurbished HDDs in the open market. Meanwhile, pricing has remained stable. We expect this trend to continue through the first quarter of 2009. Demand remains tepid for sub-80 GB capacities and prices have fallen accordingly. Direct pricing on 750 GB HDDs and higher continues to fall, although this has had little impact on the lower capacity pricing since our last report.

2.5" Drives

The majority of the activity we have been tracking in the 2.5" market has been part-number-specific requests for SATA drives used in service and production, with demand and sales steadily increasing month over month. Current demand includes 120 GB through 320 GB capacities. A significant disparity remains between pricing for excess materials and demand-driven pricing based on capacity and speed. We have also experienced increased inquiries for 2.5" IDE HDDs. Requested price points are typical of excess product–driven deals. Desired capacities range from 40 GB through 80 GB; however, few of these opportunities exist presently. Lastly, there has been an uptick in activity on the SAS interface in the 2.5" FF. The most desirable drive of this type is the 146 GB and 300 GB Seagate 15K RPM.

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Why Converge?

Converge, a subsidiary of Arrow Electronics, has evolved from an industry-leading electronics components distributor to a full service global supply chain partner. We help create full component life-cycle and process management plans for companies withchallenging sourcing, obsolescence, inventory and supply chain needs.

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Why Converge?

Converge, a subsidiary of Arrow Electronics, has evolved from an industry-leading electronics components distributor to a full service global supply chain partner. We help create full component life-cycle and process management plans for companies withchallenging sourcing, obsolescence, inventory and supply chain needs. Converge is headquartered in Peabody, Massachusetts, and has offices in Foothill Ranch, California; Amsterdam; and Singapore, along with support centers throughout Europe, Asia and the Americas. For more information about Converge,visit our website or call 978-538-8000.